Homeowners and Auto Insurance Flashcards
Home Owners Insurance Section I Coverage
A- Dwelling - Includes structures attached and/or located next to dwelling for repair. land excluded. At least 80% replacement cost
B- Other Structures - pool, detached garage, fence, patio.
C- Personal Property- no animals, motor vehicles, aircrafts, or renters stuff. Jewelry $1500 Coins $250
D-Loss of use- covers ADDITIONAL living expenses from event. Total-Normal =
Home Owners Insurance Section II Coverage
E- Personal Liability - bodily injury or property damage of another. $100k per occurrence min coverage
exclusions:
business or professional activity; motorized land vehicle (except atv and golf cart); watercraft over 50hp or sailboat over 25 feet
aircraft
workers compensation
F- Medical Payments to Others up to $1000
even if insured not liable
not applicable to household members
Basic Perils
VVV WEATHR FS
vehicles
vandalism
volcano
windstorm explosion aircraft theft hail riot
fire
smoke
Broad Named Perils
RAFF
All Basic and :
Rupture of a system
Artificially generated electricity
Falling objects 9ice, snow, sleet)
Freezing pipes
Exclusions to Broad Perils
OPEN WIF
Ordinance of Law - construction or demolition
Power Failure- power plant failure
Earth Movement - landslide earthquake
Neglect- must make reasonable means to save and mitigate loss
War - including nuclear hazard (power plant)
Intentional Acts - burning down home
Flood - including water underground and backing up from sewer
Coverage HO 1
Dwelling - basic
Other structures - basic
Personal property- basic
Loss of Use - basic
Coverage HO 2
Dwelling - broad
Structures - broad
Personal property- broad
Loss of Use - broad
Coverage HO 3
Dwelling - open
Structures - open 10%A
Personal property- broad 50%A
Loss of Use - open 30% A
Coverage HO 4
renters
personal property - broad
Loss of use -broad 30% PP
Coverage HO 5
Dwelling - open
Structures - open
Personal property- open
Loss of Use - open
Coverage HO 6
condo owner
Dwelling - covered by condo association.
Structures - interior part of structure, remainder covered by condo association.
Personal property- broad can change to Open Perils*
Loss of Use- broad can change to Open Perils* 50%C
*by endorsement (best exam answer)
Scheduled Personal Property Endorsement Floater
Wealthy clients with high value items like jewelry, stamps, coins, golf equipment, art
covered open peril basis; separately insured certain amount.
Replacement cost vs Actual cash value ACV
Replacement Cost - no deduction for depreciation (dwelling)
ACV - replacement cost-depreciation Contents
Example 10 year old fridge destroyed. Original cost $900. Typically last 15 years. New $1200.
5/15 X $1200 = $400 (less deductible) Original cost not necessary
Property Loss Calculation
Insurance < %80 of dwelling cost, insurer pays greater of:
1. ACV (not applicable for >%80) (depreciation info must be given)
2. Replacement Cost
((Insurance carried/insurance required) x loss) - deductible = apportion of ins co
Replacement cost x coinsurance = insurance required
- homeowners replacement value always 80%
- commercial can be 90%
- always use 80% if none given
Personal Liability Umbrella Policy (PLUP)
Covers what regular insurance does not or over regular ins amounts if not excluded.
may require higher liability limits on home and auto
Exclusions:
- Intentional damage/BI
- Business liability
- Your property (can’t sue yourself)
- Malpractice (failing to render services)
- Directors’ and Officer activities
- Workers Comp
Covered Auto
Any vehicle in policy declaration
New Auto automatically covered under A,B,C
Covered under D if ins co is informed w/in 14 days of acquisition. 30 days all else
Auto - who is covered
-named insured and spouse
(spouse moves- covered to earlier of: 90 days; effective date of spouse new policy; end of policy period. Spouse is defined as the non-named insured)
-family members living in house
-any person using car with your permission
Auto- Liability Coverage Part A
Coverage for you, family member, using car with your permission, organization responsible for driving auto(owned or un-owned)
BI/PD
Bodily Injury and Property Damage
Single Limit - each accident
$300,000 BI and liability claims
Split Limit - each accident
$100,000; $300,000, $50,000
$100,000- max payable for bodily injury
$300,000- aggregate paid for all bodily injury
$50,000- aggregate property damage
No coverage theft
Auto - Medical Payments - Part B
Reasonable and necessary - 3yrs date of accident
You, family member; you family member as pedestrian; any other person in car.
Per Person/ Per Occurrence
Auto - Uninsured Motorists- Part C
pays what insured would have legally been entitled to recover from uninsured operator because of bodily injury.
Covers you, family member, person in your car (pedestrian included); any person entitled to recover because of injury to previous mentioned (emotional distress)
Covers towing
Auto - Damage to Auto - Part D
our auto/rental/borrowed
Collision - accident involving car, driving off road into lake, wall or tree
perils including breakage of glass missiles falling object theft earthquake wind/hail vandalism/riot animal explosion
Covers towing
Claims Adjustment Procedure
- Replacement option - MAY replace with like/kind instead of actual cash value or replacement cost
- Abandonment or Salvage - insured MUST surrender to ins co so total loss can be claimed
- Pair or set - a clause which states that if one half of a pair, or set is damaged, the value of the whole pair will be analyzed. The insurer is not obligated to pay for the loss of the whole set when only one part has been damaged. MAY choose
